NY Fed Perli: Fed has tools to deal with unexpected money market stress
Quelle: Fxstreet
08. Mai 2024 21:25
Manager of the System Open Market Account (SOMA) at the New York Federal Reserve (Fed) Roberto Perli noted during prepared remarks on Wednesday that the Fed's recent announcement to slow the pace of Fed balance sheet run-off should reduce prospects for market stress.
According to NY Fed SOMA Perli, the Fed's decision to slow the pace of balance sheet shrinkage represents an "important and prudent step" in managing an uncertain process that could stress money markets.
Key highlights
The balance sheet wind down process has been smooth.
Recent signs of money market volatility are not a concern.
The Fed has tools to deal with unexpected money market stress.
The final destination for the Fed's balance sheet remains unknown right now.
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